Fort Walton Beach Council minutes — 11-26-07 special minutes — reading text

recommendation to place the purchasing department under human resources. Dr. Long explained the recommendation is to combine those cross- cutting functions into one department and the affect would be to reduce the number of direct reports to the City Manager. He said it is not to put purchasing under human resources it is to create a department that has those different I functions within that department. He further explained the reason for the recommendation to place the budget position report directly to the City Manager is because it was felt that is more of a management function than it is a finance function. He noted the City Manager disagreed with that recommendation and mentioned in terms of direct reports that would reduce the total to ten if the budget grants manager is retained within the finance department. The question was asked if there was any urgency on approving the recommendation. Dr. Long said there is really marginal cost savings relative to the recommendation as it is more a matter of organizational efficiency rather than imperative. The question was asked if there is legitimate concern about " grade creep" because it would be formulating a larger department. Dr. Long replied no, he did not believe it would be a grade creep, that it did not have cost implications. Recommendation # 1 - retain the Budget Grants Manager position within the City Manager as a direct report. ( City Manager disagreed) Mr. Minich moved to approve the City Manager' s recommendation that the Budget Grants Manager position remain in the Finance Department. Mr. Holmes seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. Recommendation # 2 - change the formal City organizational chart to reflect the Finance Director as a direct report to the City Manager. ( City Manager agreed) Mr. Minich moved to approve the City Manager' s recommendation to change the formal City organizational chart to reflect the Finance Director as a direct report to the City Manager. Mr. Holmes seconded motion. The question was asked on what direct report would entail. Dr. Long explained typically it involves day to day reporting and it involves conducting performance evaluation for that position. The question was asked whether Council could outline the duties of the Finance Director. The City Attorney replied in the affirmative and she would suggest it be done by ordinance so it is clearly defined as much as possible. The question was asked if it could state in the ordinance that Council would still retain control of the evaluations and salary and the duties. The City Attorney said she could not answer that because the Charter does not say anything about the duties and evaluation, it says Council will set the salary. She said in her opinion the evaluation can be done by the City Manager in her opinion because that is an administrative duty. I Clarification was requested whether the recommendation would reflect as it is in the Charter and not be a change to the Charter. The City Attorney did not see it as a change to the Charter and it also would not change the fact that Council appoints that position. She said the procedures in the Charter are regarding finance procedures and those are all conducted under the supervision and direction of the City Manager. She said the Charter says Council sets the salary of the four Charter Officers, it does not go any further than that and it is very open. Special Council 11- 26- 07 223 STU DY cont. The City Attorney said her concern when the motion was made was it says as a direct report and what that really means, and she took it that the City Manager knows that means an administrative and reporting because she does it with 13 other departments. She said if Council is comfortable with that then it will be the City Manager' s determination of what that means. The City Manager commented it is clear what the direct reporting relationship is in that the Charter says that the Finance Director works under the supervision and control of the City Manager; and it goes further to say that issues with policy and financial policy are still subject to the City Manager' s review and approval. It was further commented that the motion reflects what is in the Charter and if Council wants to change the charter, they can change it, but the relationships as pointed out in the Charter need to be clarified now. The Mayor called for the vote on the motion and it carried by a vote of 5 to 2 with Holmes, Reeves, Garvie, Hartwell, and Minich in favor and Miller and Pullen opposed. Recommendation # 3 - create an Administrative Services Department comprised of Human Resources, Information Technology, Purchasing and Public Information. ( City Manager agreed) The question was asked ifthe three positions, human resources, information technology, and purchasing would be full- time positions. Dr. Long replied in a municipality this size that is a reasonable conclusion. The question was asked if there would be another position for the administrative services department head. Dr. Long replied the treatment of that would be a matter of making that as an additional responsibility of one of the current individuals in those departments that will be combined. The question was asked if the individual who becomes the department head over administrative services would be able to speak on behalf of the two technical jobs or whether they would need to be called in to technical speak to the City Manager, and whether anything would be saved because they are very the players know their positions. Dr. Long replied that typically when that kind of reorganization occurs, issues that the strengths and communicate with each other and overall there are certain administrative to relieve the City department head can carry forward more effectively. He said the intent is to try Manager of the time required to manage those functions independently. Mr. Hartwell moved to re- evaluate the recommendation with the FY 2008- 09 Budget. Dr. Pullen seconded motion. concern with During an exchange of views in support and in opposition to the motion comments included the impact of career progression on those positions that would be combined under one new department and the impact needed to be evaluated; all other options need to be looked at in the re- evaluation; that of trust that although the department heads answer directly to the City Manager, there has to be a level the department heads are the experts, and the department heads have more autonomy in a flat it assumed would be received organization; disagreement with taking away positions, payor benefits was and have been received over previous years, and that a manager should only have certain number of a direct reports; there was lack of sufficient backup of financial information and no cost impact on the recommendations; that the motion would allow the organizational structure to remain as it is without and that the implementing anything now; that the motion would allow time to re- evaluate the impact; motion did not close the door on considering other alternatives to evaluate the span of control. The Mayor called for the vote on the motion and it carried by a vote of 5 to 2 with Holmes, Miller, Garvie, Pullen, and Hartwell in favor and Miller and Minich opposed. 2 2s4cial Council 11- 26- 07 STUDY cont. Recommendation # 5 - revise departmental performance measures to ensure consistency with the Strategic Plan goals and initiatives. ( City Manager agreed) and Recommendation # 7 - Human Resources should add efficiency measures by adding the element of time to existing performance measures. ( City Manager agreed) Dr. Pullen moved to approve the City Manager recommendations to revise departmental I performance measures to ensure consistency with the Strategic Plan goals and initiatives; and that Human Resources should add efficiency measures by adding the element of time to existing performance measures. Mr. Reeves seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. Recommendation # 8 - change the City' s contribution percentages for medical insurance premiums for employees to 90% and for dependents to 50%. ( City Manager agreed) The City Manager stated currently the City pays 75% of the employee only and 75% of the family coverage. She mentioned Dr. Long found that paying 75% of the family coverage is above the norm of what other local governments, those in particular in this area, are doing so the recommendation is to phase in a increase for how much the City will participate in family coverage. She said it has declining been discussed with Council in the past about increasing the employee only coverage to 90% and decreasing the family coverage to 50% in a 3- 5 year period. She suggested, rather than implement it in the February 2008 plan year, that Council direct staff to return with a methodology to phase it in over a 3- 5 year period beginning with the 08- 09 budget. Discussion included concern expressed for the younger, lower paid employees with families who could not afford it; and whether a two pronged approach could be used with one contribution level for current employees and the new contribution level for new employees. The City Manager acknowledged that could be done and it has been done with other benefits where current employees were grandfathered in and then changed it for all new hires. Mark Wiltsie, Human Resources Director, mentioned that Dr. Long had put in the report to provide for all new hires after a certain period of time to receive a different benefit. He said personally and professionally he is opposed to that because employees working side by side would have two different benefits and it could be an equity issue. It was questioned whether it would be inequity since the employees would know their benefits when hired. The Human Resources Director replied it is a major benefit and one of the reasons the employees come to the City for employment. He said it is talked about and there will be employees working side by side with two different benefits. He had concern it would cause dissention in the